Principle Write Downs
Don’t expect banks to be forced to reduce principle balances because it would create a moral hazard. But there is another article below backing up what I have said. I know this makes a lot of people unhappy. Since this is unlikely to happen they need to make the short sale process a lot smoother because I feel that is the better route.
A short sale done quickly and correctly will reduce the banks expenses on taxes, association dues, etc. I think what a lot of people forget is that a lot of these properties go uninsured along with vandalism and stealing of appliances, etc. To me it is a no brainer but then again, who am I?